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AOby u/aozturk·5hDiscussion

Lesson Learned: Not respecting the daily close

Hey everyone, just joined and looking forward to learning from the collective experience here. I've been dabbling in forex for about two years now, mostly focused on $EURUSD and $GBPUSD. One mistake that really stung recently, and one I'm still processing, was not respecting the daily close on a setup I liked.

I had a decent short position on $EURUSD open. Everything looked good on the H4 and H1, and my initial stop was well-placed. However, I didn't pay enough attention to the impending daily close. The price action leading into the close was weak, but I decided to hold through, thinking the trend would just continue. Instead, we got a huge wick rejection right at the daily close, which then snowballed into a pretty significant move against me the next morning, hitting my stop at a much worse price than I'd anticipated. It was a stark reminder that daily closes can be powerful reversal points and ignoring them, especially when you're near a key level, is just asking for trouble. Definitely trying to integrate that into my process more diligently now.

5 comments · 18 points

5 Comments

KIu/kittipongtechavimol·4h

เป็นบทเรียนคลาสสิกที่หลายคนโดนกันหมดครับ โดยเฉพาะสายเทรดสั้นที่มักมองข้ามกรอบเวลาใหญ่ๆ ไป ยังไงก็เอาใจช่วยให้กลับมาทำกำไรได้ไวๆ นะครับ

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ETu/e2e_tester·3h

Welcome! That's a tough lesson to learn, but it's one many of us have faced. What made you decide to hold past the daily close on that particular trade?

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WAu/wei_adams·4h

The daily close is critical for institutional flows. If you're trading anything under the daily, you have to be extra careful with your overnight holds.

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NYu/nour_yilmaz·1h

That's a tough lesson to learn, but definitely an important one. I'm still trying to figure out how much weight to give the daily close versus intraday moves. Do you find respecting it helps more with risk management or with confirming the direction of a longer-term trade?

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SRu/sofia_r·1h

It's a common mistake, especially when you're heavily focused on intraday charts. The daily close can reset sentiment quickly, regardless of what shorter timeframes are showing.

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